The Impact of Infrastructure Spending on Economic Growth: A Case Study of Indonesia

Syadullah, Makmun; Setyawan, Dhani

doi:10.26552/com.c.2021.3.a184-a192

Cited by 3 publications

(4 citation statements)

References 32 publications

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“…While according to Rutherford (2012), infrastructure is the main service of a country that allows economic and social activities to occur by providing transportation, public health services, educational services and buildings for community purposes. Other scholars define infrastructure as a physical system which produces transportation, irrigation, drainage, buildings and other public facilities to meet human basic needs in the social and economic sphere (Kodoatie, 2005;Syadullah & Setyawan, 2021). Furthermore, Pranessy et al (2012) explained that infrastructure is an important input for production activities and it can affect the economy in various ways, either directly or indirectly.…”

Section: Infrastructuresmentioning

confidence: 99%

The Impact of Real Government Spending in Physical and Social Infrastructures on Economic Growth

2022

Journal ITRev

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Most countries in the world undertake to achieve a high and sustainable economic growth due to it represents the economic welfare of countries. This study aims to analyze the effect of government spending in the physical and social infrastructures on economic growth, particularly in Indonesia by using secondary panel data 33 provinces during the period 2005-2018. Theoretically, usual economic growth model is highly affected by capital with flow characteristics. This study employs the capital stocks divided by physical and social infrastructures (public goods) consisting of Road and Bridge (BR), Irrigation, airport, port, health, and educational infrastructures as dominant variables. This study uses Panel ARDL model to investigate the functional relationship of economic growth and the public capital stocks in the short-term and long-term. The results show that all variables show a negative effect, except the road and bridge (RB) has a significant effect on economic growth in the short term. In the long term, roads and bridges (RB) and irrigation channel (IC) have a positive and significant effect on economic growth, but the others are not. These results are supported by the Pedroni Cointegration Test and KAO Cointegration Test which show a short-term and long-term balance. These findings underline that public infrastructure as capital stocks of each region with the appropriate infrastructure development play important role in sustaining the economic growth in Indonesia.

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Section: Infrastructuresmentioning

confidence: 99%

The Impact of Real Government Spending in Physical and Social Infrastructures on Economic Growth

2022

Journal ITRev

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“…Road improvements have been shown to increase individual economic activity and boost regional economic growth by facilitating market access and trade [2]. [3] found that infrastructure development, especially road infrastructure, significantly encourages economic growth.…”

Section: Introductionmentioning

confidence: 99%

Revealing the impact of losses on flexible pavement due to vehicle overloading

Miftahulkhair,

Arifin,

Sutikno

2024

EEJET

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Pavement overload has become a significant concern in Indonesia due to its damaging effects on the pavement system, where most roads use flexible pavements. Meanwhile, overloading is also typical in other developing countries, causing everything from damage to accidents to the detriment of road users and operators. The current problem is that there is no definite knowledge of handling these overloaded vehicles, which has adverse effects. Therefore, this study aims to reveal the impact of losses caused by overloaded vehicles on flexible pavement. This research uses vehicle traffic load data to examine actual conditions in the field, which are converted to axle load values for each vehicle and used to determine pavement condition using the truck factor approach, mechanistic-empirical design, pavement smoothness level, and the impact of overloading due to fuel consumption by vehicles on flexible pavement. The results show that overloaded vehicles harm the flexible pavement. The increase in truck factor values for all vehicles in overloaded vehicles beyond the maximum allowable load results in more damage to the flexible pavement with an increase in truck factor values up to 83 %. The effect of overloading can be mitigated by increasing the thickness of the asphalt layer and the modulus of asphalt, so it is essential to pay attention to the quality of asphalt in anticipation of this overloading. To anticipate the overload phenomenon, it was found that the thickness of the asphalt overlay in the range of 170–205 mm could mitigate this detrimental effect. In addition, overloading affects the flexible pavement roughness and vehicle fuel consumption. Increased roughness and fuel consumption will increase road maintenance costs and affect driving comfort and safety. In addition, excessive fuel consumption can pollute the surrounding environment

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“…Empirical evidence relating to the effect of government spending on economic growth has been widely obtained from studies carried out in Indonesia. The research in question includes Rifa 'i & Moddilani (2021), Syadullah & Setyawan (2021), Wibowo (2020), Mudiarcana & Marhaeni (2018), Putri, Azwardi, Marwa & Andaiyani (2018), Wahyudi (2020), Prasetyo & Zuhdi (2013). These studies have discussed numerous perspectives and locus.…”

Section: Introductionmentioning

confidence: 99%

“…For instance, Rifa 'i & Moddilani (2021) discussed the effect of education spending on economic growth using time series analysis. Syadullah & Setyawan (2021) analysed the impact of infrastructure spending on economic progress, Wibowo (2020) discussed the influence of three main budgets on regional economic growth. Mudiarcana & Marhaeni (2018) only observed the connection between government expenditure on economic development in Balin Province.…”

Section: Introductionmentioning

confidence: 99%

Government Spending and Regional Economic Growth: The Mediating Effect of Human Development Index

Sasongko

Wibowo

2022

JEBIK

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The dynamic of local government spending on education, health care, and infrastructure in the region shows an interesting phenomenon in the last decade. Despite the fact that budget expenditures of sub national governments have grown substantially, the pace of the human development index and the rate of economic growth have provided us different pictures. This study aims to analyze the impact of the three spending groups on the quality of human development and economic growth in Indonesia. This research used purposive sampling method to obtain data from as many as 464 districts/cities that were observed during the 2016-2018 period. Based on panel analysis, there was evidence that health spending had a positive effect on the human development index and community welfare. By contrast, spending on education and infrastructure did not have a good effect on these two development indicators. Based on the Sobel test, only health spending had a positive indirect effect on economic growth through the quality of human development. Meanwhile, education spending did not have a significant effect on economic growth, either directly or indirectly. Future research may develop another measurement for insfrastructure spending to provide better proxy.

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The Impact of Infrastructure Spending on Economic Growth: A Case Study of Indonesia

Cited by 3 publications

References 32 publications

The Impact of Real Government Spending in Physical and Social Infrastructures on Economic Growth

The Impact of Real Government Spending in Physical and Social Infrastructures on Economic Growth

Revealing the impact of losses on flexible pavement due to vehicle overloading

Government Spending and Regional Economic Growth: The Mediating Effect of Human Development Index

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